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International Project Management
Prof. Dr. Frank Habermann
Lecture 1 –
Foundation Principles of Project Management
© Becota GmbH | www.becota.com | 2010
What is a project?
A brief excursion to system theory
Types of business projects
When do we call a project a success?
Standard project management lifecycle
Content
© Becota | www.becota.org | 2010
first of all,
what is a
project?
© Becota | www.becota.org | 2010
What is a project?
Picture Source: www.infrastructurist.com
© Becota | www.becota.org | 2010
What is a project?
Picture Source: www.infrastructurist.com
A construction…
© Becota | www.becota.org | 2010
What is a project?
Picture Source: www.infrastructurist.com
A construction…
definite …
© Becota | www.becota.org | 2010
What is a project?
Picture Source: www.infrastructurist.com
A construction…
definite …which needs
special resources … …
© Becota | www.becota.org | 2010
What is a project?
Picture Source: www.infrastructurist.com
A construction…
definite …which needs
special resources … …
aimingat future
improvements …
© Becota | www.becota.org | 2010
What is a project?
Picture Source: www.infrastructurist.com
A construction…
definite …which needs
special resources … …
aimingat future
improvements …
but meanwhilecausingtrouble!
© Becota | www.becota.org | 2010
In other words …
THEBUSINESS
regular processesproviding regular values
© Becota | www.becota.org | 2010
In other words …
THEBUSINESS
regular processesproviding regular values
APROJECT
temporary processwith unique results
© Becota | www.becota.org | 2010
In other words …
THEBUSINESS
regular processesproviding regular values
APROJECT
temporary processwith unique results
Negative side-effects: - cost- and time-consuming- occupies business resources (intellectual capacities)- irritating and disturbing (distroys routines/comfort zones)- unsure results (what, when, for whom, etc.)
© Becota | www.becota.org | 2010
What characterizes a project?
Picture Source: www.infrastructurist.com
PROJECT RESULT
1. Temporary(a project got a
clear start and end date)
2. Unique(a project provides individual
and substantial results)
© Becota | www.becota.org | 2010
a brief
excursionto
system theory
© Becota | www.becota.org | 2010
Some brief thoughts about system theoryi- What is a system?
A set of elements which interact with each otherand build an „integrated whole“
A system is thus characterized by
- its elements (e.g. )- as well as their relationships
systemboundary
© Becota | www.becota.org | 2010
Some brief thoughts about system theoryii- What are the characteristics of a system?
Each systemhas a certain structure shows specific behavior!
© Becota | www.becota.org | 2010
Some brief thoughts about system theoryii- What are the characteristics of a system?
Each systemhas a certain structure shows specific behavior!
Sub System C
Sub System B
Sub System A
SYSTEM
Sub-subSystem C1
Sub-subSystem C2
. . .
Static relationships(composition/decomposition)
© Becota | www.becota.org | 2010
Some brief thoughts about system theoryii- What are the characteristics of a system?
Each systemhas a certain structure shows specific behavior!
Sub System C
Sub System B
Sub System A
SYSTEM
Sub-subSystem C1
Sub-subSystem C2
. . .
Static relationships(composition/decomposition)
system(element)
INPUT OUTPUT
acting as„receiver“(customer)
acting as„sender“(provider)
Dynamic relationships(communication/collaboration)
© Becota | www.becota.org | 2010
Some brief thoughts about system theoryiii- How about business projects?
A specific business(e.g. an automotive company)
is a system
involving elements such as
Human Resources
Information Technology, etc.
Products (Cars!)
© Becota | www.becota.org | 2010
Some brief thoughts about system theoryiii- How about business projects?
A specific business(e.g. an automotive company)
is a system
involving elements such as
Human Resources
Information Technology, etc.
Products (Cars!)
A specific projectrelated to the business
is a system as well
involving elements such as
Human Resources
Information Technology, etc.
Products (Project Results!)
© Becota | www.becota.org | 2010
Some brief thoughts about system theoryiii- How about business projects?
business project
From the businessperspective, the project
is a sub-systemof the business
The projects usescorporate resources and
is part of the business agenda
© Becota | www.becota.org | 2010
Some brief thoughts about system theoryiii- How about business projects?
business project
From the projectperspective, thebusiness is thetarget system
The businesssets constraints for and
gets results from the project
© Becota | www.becota.org | 2010
Some brief thoughts about system theoryiii- How about business projects?
IT
business project
a concrete projectaims at a specific
element (sub-system) ofthe target system, e.g. IT
Improve [IT] with regards to- effectiveness (business fit)- efficiency (cost of ownership)- availability- other corporate values
© Becota | www.becota.org | 2010
so, what are the
typesof business
projects?
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Major types of projects (1/3)
THE BUSINESS
1.- Projects providing results for the business
i.e. projects aiming at improvements of the businesstechnical projectsorganizational projectsproduct development projects, etc.
© Becota | www.becota.org | 2010
Major types of projects (2/3)
THE BUSINESS
2.- Projects providing results as part of the business
i.e. projects aiming at providing customer satisfactionprojects are the core businesscorporate products are created within projectsor project services are the product itself
© Becota | www.becota.org | 2010
Major types of projects (3/3)
3.- Depending on the type of the main result
PROJECT RESULT Deliverable
SERVICE PRODUCT
COULD BE
e.g. consultingprojects are
service projects
e.g. buildinga unique yacht is a
product project
=> If the customer buys a combination of qualifiedservices and products we call this a hybrid project
© Becota | www.becota.org | 2010
Implementing newmanagement methods
Types of business projects
Mergingfirms
Research
Implementingsoftware / hardware
Building a newplant
Re-designingprocesses
Re-buildingstructures
Major purchase
Organizingan event
Feasibilitystudy (pre-
project)
Marketing campaigns
Setting up a regional
subsidary
Outsourcing
Internalcost cuttinginitiatives
Pilotinginternationalpartnerships Constructing a
new product
and many more…
Finding a new CEO
© Becota | www.becota.org | 2010
What makes a project
asuccessful
project?
© Becota GmbH | www.becota.com | 2010
When do we call a project a success?
1. 2. 3.
© Becota | www.becota.org | 2010
When do we call a project a success?
Picture Source: www.infrastructurist.com
© Becota | www.becota.org | 2010
When do we call a project a success?
Picture Source: www.infrastructurist.com
it disappearson due date!
© Becota | www.becota.org | 2010
When do we call a project a success?
Picture Source: www.infrastructurist.com
we only usethe resources
previously agreed
it disappearson due date!
© Becota | www.becota.org | 2010
When do we call a project a success?
Picture Source: www.infrastructurist.com
we deliver theexpected results
(type andquantity)
we only usethe resources
previously agreed
it disappearson due date!
© Becota GmbH | www.becota.com | 2010
When do we call a project a success?
on time on budget on quality
© Becota GmbH | www.becota.com | 2010
Project scoping
on time on budget on quality
scopingis the procedure of setting the parameters for each criteria
© Becota GmbH | www.becota.com | 2010
Project controlling
on time on budget on quality
scopingis the procedure of setting the parameters for each criteria
controllingis the procedure of managing performance against predefined parameters
© Becota GmbH | www.becota.com | 2010
Project scoping and controlling need understandingthe cost-time-quality equilibrium
changing only one criteriastrongly impacts the others!
© Becota GmbH | www.becota.com | 2010
In corporate practice … what do you think, how many projects fail at least one of the three criteria?
Picture source: http://learn-wealth-creation.com/blog/
© Becota GmbH | www.becota.com | 2010
In corporate practice … what do you think, how many projects fail at least one of the three criteria?
30-70%*depending on the type of project
Picture source: http://learn-wealth-creation.com/blog/
*
© Becota GmbH | www.becota.com | 2010
And even in case of (officially) successful projects,one criteria actually very often isn‘t met!
The official version(told by the project manager)
© Becota GmbH | www.becota.com | 2010
And even in case of (officially) successful projects,one criteria actually very often isn‘t met!
The official version(told by the project manager)
The business reality(told by the customers/users)
© Becota | www.becota.org | 2010
What about the
project
lifecycle?
© Becota | www.becota.org | 2010
Standard project management life cycle
Project
Source: inspired by Verzuh, E., The Fast Forward MBA in Project Management, p. 23
Every project has three major phases!
© Becota | www.becota.org | 2010
Standard project management life cycle
INITIATE RUN COMPLETE
Source: inspired by Verzuh, E., The Fast Forward MBA in Project Management, p. 23
© Becota | www.becota.org | 2010
Standard project management life cycle
INITIATE RUN COMPLETE
Source: inspired by Verzuh, E., The Fast Forward MBA in Project Management, p. 23
… which can be drilled down!
© Becota | www.becota.org | 2010
Standard project management life cycle
INITIATE RUN COMPLETE
Plan Execute Close outDefine
Source: inspired by Verzuh, E., The Fast Forward MBA in Project Management, p. 23
© Becota | www.becota.org | 2010
Standard project management life cycle
INITIATE RUN COMPLETE
Plan Execute Close outDefine
Approve
Envision
Plan
Set-up
Kick-off
Source: inspired by Verzuh, E., The Fast Forward MBA in Project Management, p. 23
© Becota | www.becota.org | 2010
Standard project management life cycle
INITIATE RUN COMPLETE
Plan Execute Close outDefine
Approve
Envision
Plan
Set-up
Produce
Conceptualize
Test
TrainKick-off
Source: inspired by Verzuh, E., The Fast Forward MBA in Project Management, p. 23
© Becota | www.becota.org | 2010
Standard project management life cycle
INITIATE RUN COMPLETE
Plan Execute Close outDefine
Approve
Envision
Plan
Set-up
Produce
Conceptualize
Test
TrainKick-off
Document
Hand-over
Control & Communicate
Source: inspired by Verzuh, E., The Fast Forward MBA in Project Management, p. 23
© Becota | www.becota.org | 2010
Standard project management life cycleproject effort during the lifecycle
INITIATE RUN COMPLETE
PR
OJE
CT
EFFO
RT
TIME
© Becota | www.becota.org | 2010
Standard project management life cycleproject effort during the lifecycle
INITIATE RUN COMPLETE
PR
OJE
CT
EFFO
RT
Define
TIME
© Becota | www.becota.org | 2010
Standard project management life cycleproject effort during the lifecycle
INITIATE RUN COMPLETE
PR
OJE
CT
EFFO
RT
Plan
Define
TIME
© Becota | www.becota.org | 2010
Standard project management life cycleproject effort during the lifecycle
INITIATE RUN COMPLETE
TIME
PR
OJE
CT
EFFO
RT
Plan
Define
Execute
© Becota | www.becota.org | 2010
Standard project management life cycleproject effort during the lifecycle
INITIATE RUN COMPLETE
TIME
PR
OJE
CT
EFFO
RT
Plan
Define
Execute
Close out
© Becota | www.becota.org | 2010
Standard project management life cycleneeded resources versus actual investment
INITIATE RUN COMPLETE
PR
OJE
CT
EFFO
RT
TIME
© Becota | www.becota.org | 2010
Standard project management life cycleneeded resources versus actual investment
INITIATE RUN COMPLETE
PR
OJE
CT
EFFO
RT
Should-be(in theory)
TIME
© Becota | www.becota.org | 2010
Standard project management life cycleneeded resources versus actual investment
INITIATE RUN COMPLETE
PR
OJE
CT
EFFO
RT
Should-be(in theory)
TIME
© Becota | www.becota.org | 2010
Standard project management life cycleneeded resources versus actual investment
INITIATE RUN COMPLETE
PR
OJE
CT
EFFO
RT
Should-be(in theory)
Staffing,understanding, gaining speed
Highestconcentration,
getting things done
Releasingresources, handing
over to business
TIME
© Becota | www.becota.org | 2010
Standard project management life cycleneeded resources versus actual investment
INITIATE RUN COMPLETE
PR
OJE
CT
EFFO
RT
As-usually-is(in practice)
TIME
© Becota | www.becota.org | 2010
Standard project management life cycleneeded resources versus actual investment
INITIATE RUN COMPLETE
PR
OJE
CT
EFFO
RT
As-usually-is(in practice)
Initial excitment, quickly followed by
losing interest
Underestimatingamount of work orbeing frustrated by
lack of understanding
Facing the deadline, finally realizing that
things must bedone
TIME
© Becota | www.becota.org | 2010
Standard project management life cycleneeded resources versus actual investment
INITIATE RUN COMPLETE
PR
OJE
CT
EFFO
RT
As-usually-is(in practice)
Should-be(in theory)
!
TIME
© Becota | www.becota.org | 2010
Standard project management life cycleTypical project douments
INITIATE RUN COMPLETE
Project Contract
Project Charter Rough
Require-ments
Definition
Project Plan
© Becota | www.becota.org | 2010
Standard project management life cycleTypical project douments
INITIATE RUN COMPLETE
Project Contract
Project Charter Rough
Require-ments
Definition
SolutionDocumentation
Test PlanConceptual
Solution(Models)
DetailedRequire-ments
Definition
TrainingPlan
Project Plan
© Becota | www.becota.org | 2010
Standard project management life cycleTypical project douments
INITIATE RUN COMPLETE
Project Contract
Project Charter Rough
Require-ments
Definition
SolutionDocumentation
Test Plan Approvals
(technical &organizational)
Hand-overDocumention(e.g. Support
Info)
ClosureReport
ConceptualSolution(Models)
DetailedRequire-ments
Definition
TrainingPlan
Project Plan
© Becota | www.becota.org | 2010
Standard project management life cycleTypical project douments
INITIATE RUN COMPLETE
Project Contract
Project Charter Rough
Require-ments
Definition
SolutionDocumentation
Test Plan Approvals
(technical &organizational)
Hand-overDocumention(e.g. Support
Info)
ClosureReport
ConceptualSolution(Models)
DetailedRequire-ments
Definition
TrainingPlan
ProgressReport
ProgressReport
Project Plan
Thank you very much!
presentation by
Frank Habermann
founder of Becota and Professor of Business
http://de.linkedin.com/in/frankhabermann/en
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